KINGSTON, Jamaica – Jamaica is expected to register a record US$4.38 billion for the fiscal year 2023-24 from the tourism industry, Tourism Minister Edmund Bartlett has announced.
Speaking durig the 2024/25 Sectoral Debate in the House of Representatives on Tuesday, Bartlett told legislators that stopover arrivals are projected at 2.96 million, reflecting a 9.4 per cent increase over the previous period, with cruise arrivals expected to reach 1.34 million, up by nine per cent from the previous period in 2022/23.
Bartlett said that the US$4.38 billion in earnings “is the largest revenue flow from tourism in the history of the tourism industry.
“Several of our communities that were reeling from COVID, as a result of this performance, are now bustling centres of commerce and activity again and are providing more jobs.”
Bartlett said that for the first three months of this year, an estimated 1.34 million visitors have come to Jamaica with earnings of US$1.27 billion. He said the figure includes 788,000 stopovers, which is a 7.4 per cent increase over the first three months of 2023.
“Cruise has come back (with) 554,560 (cruise passengers])representing a 16.1 per cent increase over the corresponding three months last year,” he said, telling legislators that the Canadian market is growing and has shown improvement.
“It grew, in fact, by 38.6 per cent and now accounts for 12.9 per cent of the market, which is very good for us because it was just about 10 per cent before COVID. What has happened, however, is that some of the other markets have shrunk and we will have to go back to build them and to get them stronger.”
Bartlett said that the Tourism Enhancement Fund collected US$59.2 million in fees last year and that these funds had been generated through the US$20 fee for incoming airline passengers and the US$2 fee for cruise passengers, directly contributing to the Consolidated Fund.
The country also earned US$103.5 million in departure tax; $4.6 billion in airport improvement fees; airline passenger levy, $9.2 billion; passenger fees and charges, $11 billion; and room tax, $3.6 billion, for a total direct revenue flows into the consolidated fund of US$345.8 million or $53.6 billion.
“So, that $53.6 billion is directly into the government revenues, but it does not include the many billions that flow from general consumption tax (GCT), because tourism is the most consumption-driven activity on planet Earth. People travel to consume and consume, and at every point of consumption, they pay a tax,” Bartlett said.
During his presentation, Bartlett also disclosed that Jamaica’s short-term vacation rental is booming, saying “data from Airbnb indicates that guest check-ins for January to December 2023 increased by 28 per cent over 2022, generating an estimated J$31.8 billion (One Jamaica dollar=US$0.008 cents) gross earnings from 1.3 million guest nights”.
He said the short-term vacation rental subsector continues to gain market share, with approximately 36 per cent of visitors opting for this accommodation category.
“We anticipate that developments in the local construction sector will contribute additional stock to this subsector,” Bartlett said, adding that while the sector seeks to add more rooms to accommodate visitors, the industry workers have not been forgotten in these plans.
“The Ministry of Tourism has welcomed the pledge by four major international hotel investors, including RCD Hotels, Bahia Principe, Grand Palladium and Princess Resorts, who have committed to constructing over 2,000 residential units for industry employees combined. This includes apartments and houses for the workers and their immediate relatives.”
Bartlett said the announcement came out of a meeting with representatives of Inverotel, an association representing Spanish hoteliers in Madrid, Spain.
“At the core of these initiatives lies a profound commitment to the well-being and prosperity of our people. It underscores our unwavering dedication to fostering inclusive growth and ensuring that every Jamaican reaps the rewards of our nation’s burgeoning tourism sector, reassuring our commitment to our citizens’ welfare,” he told legislators.
